Oil States International (OIS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues were $145.4 million, with adjusted EBITDA of $17 million and net income of $1.1 million ($0.02 per share), including restructuring and asset impairment charges of $4.1 million related to U.S. land-based exits.

• Offshore and international projects accounted for 72% of Q1 revenues, reflecting a strategic shift toward higher-margin business.

• Backlog remained near a decade-high at $430 million, with a quarterly book-to-bill ratio of 0.9x.

• Results were impacted by heightened geopolitical tensions in the Middle East, causing volatility, supply chain disruptions, and increased costs.

• The company strengthened its balance sheet by retiring $52.7 million in convertible senior notes in April 2026.

Financial highlights

• Q1 2026 revenues: $145.4 million; adjusted EBITDA: $16.7 million; net income: $1.1 million ($0.02/share), including non-cash impairment and exit charges; adjusted net income: $5.2 million ($0.09/share).

• Offshore Manufactured Products: $91.4 million revenue, $18.5 million adjusted EBITDA, 20% margin; backlog at $430 million.

• Completion and Production Services: $21.5 million revenue, $6.1 million adjusted EBITDA, 29% margin.

• Downhole Technologies: $32.4 million revenue, $1.1 million adjusted EBITDA; operating loss improved from prior year.

• Cash and cash equivalents at quarter-end were $59 million; cash on hand exceeded outstanding debt by $4 million.

Outlook and guidance

• Q2 2026 revenue guidance: $157–$162 million; EBITDA: $18–$20 million.

• Full-year guidance unchanged due to Middle East conflict uncertainty; expedited resolution could support guidance, prolonged conflict poses risk.

• Management expects near-term volatility from geopolitical and market uncertainties but sees long-term structural opportunities.

• Offshore and international markets expected to drive growth; U.S. land activity seen as incremental upside.